Gold touches seven-week peak on Strait of Hormuz reopening hopes

Gold advanced for a fourth straight session on Thursday and touched its highest level ‌in seven weeks, helped by weaker oil prices, a softer dollar and lower Treasury yields, on growing hopes over the Strait of Hormuz reopening. Spot gold was up 1% at $4,285.84 per ounce by 0132 GMT, the highest level since June ​18. On Wednesday, bullion posted its biggest daily gain since February. US gold futures rose 0.9% ​to $4,345.80. “The sharp rally came on building optimism that a diplomatic breakthrough in the ⁠Middle East is close to being finalised. This in turn would keep downside pressure on oil prices ​and reduce the need for central banks to raise rates, providing a clear tailwind for gold,” IG ​market analyst Tony Sycamore said.